Identity Theft Feed

I've dealt with bill collectors over the years. Fortunately for me, it's been on behalf of a couple of relatives who found themselves in over their heads financially. Fortunately for my family members, after much — way too much — and often contentious back and forth, we were able to come to a satisfactory resolution. That's why I tend to share former Taxpayer Advocate Nina Olson's skepticism about the way that private collection agencies, or PCAs in tax-acronymese, interact with folks who owe taxes. But despite my, Olson's and many others' lingering distrust of these operations, private debt collect is... Read more →


The Internal Revenue Service and its Security Summit partners have made major strides in recent years in fighting tax-related identity theft. Much of the effort has been in educating taxpayers and businesses about ways to recognize and avoid scams and other tax ID schemes. The IRS also has improved the way it works with taxpayers who do fall victim to identity thieves. Now Uncle Sam is expanding a way that taxpayers can be more proactive in fighting identity theft. The IRS' opt-in Identity Protection Personal Identification Number (IP PIN) now is available for the 2020 tax-filing season to taxpayers in... Read more →


Photo by creditdebitpro Voluntary compliance is the backbone of the U.S. tax system. But when that doesn't work out as Uncle Sam hopes, he knows the Internal Revenue Service has ways to get the money. One of the most drastic ramifications of unpaid tax is the loss of other property. In extreme unpaid tax cases, the federal government places a lien on delinquent taxpayers' other assets. This ensures the Treasury gets something of value to offset the overdue tax bill. Criminals know this process, too. That's why, warns the IRS, we all need to be on alert for a new... Read more →


Law enforcement officers across five U.S. federal agencies successfully concluded a four-month investigation this month with the arrest of 281 people allegedly involved in global email scams. The scams, officially known as Business Email Compromise (BEC) schemes, are designed to intercept and hijack wire transfers from businesses and individuals, including many senior citizens. Most of the alleged cyber criminals, 167, were arrested in Nigeria. Insert your own fraudulent prince email comments here. Another 74 people in the United States were taken into custody. The remaining arrests were made in France, Ghana, Italy, Japan, Kenya, Malaysia, Turkey and the United Kingdom.... Read more →


Yes, I know I've been fixated of late on computer security. First there was the ransomware warning. Then the new Internal Revenue Service impersonation tax identity theft scheme appeared. Part of the reason such topics have captured my fancy recently is that for the last week I've been away from my office a lot. That's meant doing much of my work on other systems. Even though I trust them, I always get a twinge of fear that somehow, someone will hack me. So thanks for bearing with me on my repetitive focus on computer — and tax — security, as... Read more →


Those mask pull-off scenes from Mission: Impossible movies are always fun, but real-life impersonators pretending to be from the IRS could cost you dearly. (Screenshot of movie mask reveal montage on YouTube) We're getting closer to the Oct. 15 filing deadline for those who got an extension back in April to fill out their returns. You can tell not only by the countdown clock ticking away on the ol' blog (shameless plug: it's in the narrow right-hand column), but also because tax scammers are back. The Internal Revenue Service and its Security Summit partners are warning taxpayers and tax professionals... Read more →


Ransomware has evolved over the last three decades from a targeted cyber attack distributed on literal floppy discs to a major electronic security crisis for individuals, companies and governments. This type of malware typically locks out computer users and locks down their systems until the cyber hijackers are paid to return access to the information. In 2017, WannaCry ransomware went global, infecting more than 200,000 computers across 150 countries. Most recently, almost two dozen Texas towns were victims of a coordinated attack. The Lone Star State electronic lockouts follow patterns set by ransomware demands in Florida, Maryland and New York.... Read more →


This February 2016 photo on Twitter of Donald J. Trump signing a tax return is one of the few, and unrevealing, looks we've gotten of his federal filings. The focus of Donald J. Trump and his White House change quickly. Issues that were boiling over just days ago quickly get pushed to a back burner by something else that's hotter. But some of those old topics are still simmering. And one of them, Trump's tax returns, saw the heat turned up a bit recently. It was, however, a former college student, not Trump, who was put on the hot spot.... Read more →


The Internal Revenue Service and its Security Summit partners this summer launched a campaign to encourage tax professionals to review and upgrade their security systems. But it looks like the IRS also needs to do some work, according to a recent Government Accountability Office (GAO) report. IRS online option breach spurs inquiries: The GAO has been conducting audits on how the IRS manages its security since the agency sustained a data breach in 2015 of its Get Transcript online service. That attempt by hackers exposed the data of around 104,000 taxpayers to potential identity thieves. The service was offline for... Read more →


Computer hacking ID theft image by Don Hankins via Flickr The $700 million deal reached by the credit-reporting company Equifax and federal and state agencies has brought the issue of identity theft back into the public consciousness. Truth be told, it never really left. Every day, we're bombarded by warnings about how crooks are constantly trying to steal our personal information so they can use it take our money and take over our lives. That's a message the Internal Revenue Service is still working to get out to taxpayers and tax professionals alike. Its latest effort is a six-point tax... Read more →


"Dead Again" was a fun thriller, but the concept isn't amusing if the IRS is holding your tax refund for the second time in two years because it still thinks you're deceased. Death and taxes are inevitable, but that's not the eventual convergence yet for one woman. Shakira Evans of Philadelphia, however, is having trouble convincing the Internal Revenue Service of that. Worse, it's the second consecutive year that the 22-year-old mother of two has had to fight for her tax refund from the IRS, which still thinks she's dead. Dead again: Evans went through this same thing last year,... Read more →


IRS building photo by Kari Bluff via Flickr CC The Taxpayer First Act, which is awaiting the president's signature to become law was signed into law on July 1, got a lot of attention for what wasn't in it. The controversial section that would have codified the Free File Alliance was removed in the bill's revised House version, which was approved by voice vote in that chamber on June 10. Three days later, the Senate approved the reworked bill, also by voice vote, and sent it to the White House. Opponents of the formalized Free File section argued that it... Read more →


My mother is almost 85. She's no Betty White, but all things considered she doing darn well. Especially when it comes to cognition and attitude. She listens to an audio book a week, keeps up with the news and her favorite TV game show (Jeopardy) and doesn't take any guff from unsolicited callers trying to sell her stuff. Or worse. Unfortunately, that latter instance is not the case for many in my mom's demographic. A recent Marketplace series examined how the aging brain may become more susceptible to financial scams. Among the findings, data suggest that as we get older,... Read more →


A big part of companies' federal tax responsibilities is paying employment taxes for their workers. These are the Social Security, Medicare and unemployment taxes on those employees' wages. However, when it comes to workers who are hired as contractors, it's the worker who's totally responsible for these taxes, in addition income tax withholding via estimated tax payments. That's why, when appropriate and fiscally feasible, many firms try to hire independent contractors. Sometimes, though, the line between employees and contractor is fine. It's facts and circumstances in each case when deciding how to classify a worker. And if the Internal Revenue... Read more →


At least one state, Texas, joins the Internal Revenue Service in making filing accommodations for those affected by software company's malware troubles. Watch the full classic Roseanne Roseannadana skit at NBC's Saturday Night Live video page. As the wonderful Gilda Radner character Roseanne Roseannadana used to say, "It's always something." That's particularly true in the tax world. Just when we thought we had made it relatively unscathed through the 2019 tax season, which already was crazy since it was the first one in which most of the Tax Cuts and Jobs Act (TCJA) changes took real life effect for taxpayers,... Read more →


Unfortunately for taxpayers and the Internal Revenue Service, there's nothing new under the sun when it comes to tax scams. Fortunately for taxpayers and the IRS, the tax agency and its Security Summit partners are still on top of the most common scams that continue to pop up in some form year-round. These 12 schemes, which have been dubbed the Dirty Dozen tax scams, get added attention, of course, during the main tax filing season. During these hectic days from Jan. 1 — yes, some folks are ready to file that soon — through April 15, millions of us are... Read more →


If a phone call from someone claiming to be with an official tax office doesn't sound quite right, it's because it's probably a scam call. (Photo by rocketace via Flickr) I'm not a paranoid person. And the only conspiracy theories I've ever paid attention to were the for-entertainment-purposes-only ones promoted on television's The X-Files. But I've got wonder if the tax crooks who are working nonstop to steal our identities and tax refunds also are colluding to troll the Internal Revenue Service. Case in point, the latest tax scam alert from the IRS. Today the tax agency issued a warning... Read more →


I attend fitness classes — OK, mostly yoga and I tend to head into Savasana a bit sooner than most of my fellow yogis — several times a week at my neighborhood club. Most of the members have been there for year and it's got a community feel. Still, I am always amazed at how much personal information folks share about themselves with people they really don't know very well. Many folks, in fact, share stuff albeit unintentionally with total strangers as a recent piece by Kate Klonick for the New York Times alarmingly illustrates. Klonick, who teaches information privacy... Read more →


The 2019 tax filing season appears, so far, to be thankfully free of tax scams. Maybe it's because things are going a bit more slowly, either due to the many tax law changes, the lengthy government shutdown that preceded it or a combination of both. I hate to be a buzzkill, but this early filing season respite is probably the best we can hope for. Tax realists know that crooks are still out there, planning and/or implanting their schemes to steal taxpayer identities and file fake returns to get fraudulent refunds. Scams increase as tax deadline nears: That concern is... Read more →


Prior year tax returns serve many purposes. This filing season, a check of last year's return will show you what your tax liability for 2017 was. You can compare that to your final 2018 tax bill to see if the Tax Cuts and Jobs Act (TCJA) did indeed lower your taxes even though your refund this year was smaller. You'll also need past year tax data if you're applying for a major loan, such as a mortgage. And if you're electronically filing your tax return this year, you'll need data from your previous year's taxes to complete that task. Record... Read more →